Consortium Capabilities for Enterprise Blockchain Success

Abstract

Enterprise blockchain projects have great promise. They can cut costs and promote efficiency through disintermediation, increase transparency for tracking intercompany transactions, expand knowledge through consortia databases, and improve workflows through shared business processes. Despite its potential, blockchain technology has failed to produce promised benefits for enter-prise networks. While the underlying technology has advanced rapidly, managerial capabilities needed to form and manage blockchain consortia have lagged and as a result, few consortia have succeeded. This paper reviews the extant literature on blockchain consortia and provides a frame-work that identifies 1) foundational conditions that precede effective consortium formation, 2) capabilities required for effective consortium functioning and evolution, and 3) partner and ecosystem-level outcomes associated with successful blockchain projects.